Goldgroup Begins Tunneling at Caballo Blanco

Goldgroup Mining Inc. (OTC Other: GGAZF and TSX: GGA) announced today that blasting and tunnel construction into the La Paila mineralized zone at Goldgroup’s flagship gold project, Caballo Blanco in Veracruz, Mexico, has commenced.

The tunnel will be driven into the La Paila zone for better  interpretation of the high-grade structures within the mineralized zone and also to extract large scale bulk samples for pilot plant on-site metallurgical testing to confirm the suitability of an open-cut, run-of-mine, heap-leach gold operation.

In the release Keith Piggott , Goldgroup’s President and CEO stated:  “This is another important milestone. Together with our diamond drilling program and advanced on-site column leach testing, this tunnel development is consistent with our schedule to commence production at Caballo Blanco in 2012.  The local communities have been very supportive of the Caballo Blanco gold project and many dignitaries and local representatives were present to witness the initial blast.”

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